Balaji, a DMK minister, is under closer scrutiny as the ED focuses on “4 Major Scams” inside his departments

Two powerful DMK ministers in Tamil Nadu’s cabinet are being increasingly strangled. When it comes to a 12-year-old mining case, the Enforcement Directorate is currently conducting raids on the offices and home of state education minister K Ponmudi, who also underwent a lengthy interrogation this week. At the same time, problems are growing for another influential minister, V Senthil Balaji, who was detained by the agency last month in connection with an alleged cash-for-jobs scam.

In addition, the ED has discovered three further frauds linked to Balaji’s departments. According to information, other schemes involving solar plants, transformers, and windmills are presently being investigated.

ASKING SC FOR RELIEF

A division bench of the Supreme Court heard a plea filed by Balaji’s wife Megala on Friday, contesting both his detention by the ED and the Madras High Court ruling upholding the arrest. The next hearing will take place on July 26.

The Enforcement Directorate has discovered several damning papers, information on profits, and a money trail leading to offshore accounts and businesses while the case is still being heard by the SC, according to a source in the agency. The source stated that the investigators are already looking into at least 16 further incidents involving Balaji.

“We have some of his bank records and account statements. More departmental anomalies are being revealed as a result of some outdated records that we took from his office. He seemed to be actively involved in at least four other schemes, according to a senior ED official.

BENAMI RESIDENCES

Balaji and his family members allegedly hold many Benami homes and shell firms through which he allegedly laundered money, in addition to departmental violations, according to ED authorities.

The most well-known Benami land issue involves Balaji’s brother Ashok Kumar, who is accused of receiving a property worth Rs 40 crore (current assessment) as a gift from his mother-in-law for his wife and him. According to authorities, a person sold his mother-in-law the four acres of valuable property in the city’s center for Rs 10.88 lakh in 2022. The ED was informed during his investigation that the person had sold the property due to a “Vastu” issue.

According to an ED source, Balaji’s family began building on the property after the stamp duty, which was supposed to cost between Rs. 10 and 12 crore, was avoided. The source said, “The buyer, the mother-in-law of Ashok Kumar, did not file income tax returns ever and her claims to have the cash turned out to be false during the course of the investigation. This raised suspicions about the money trail for buying this land.”

According to a top ED official, the instances involving Benami properties and other financial irregularities in Balaji’s departments’ procurement procedures have also been connected to the cash-for-jobs scandal and are now being looked into.